SFL (NYSE:SFL) & Capital Clean Energy Carriers (NASDAQ:CCEC) Financial Analysis

Capital Clean Energy Carriers (NASDAQ:CCEC) and SFL (NYSE:SFL) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Capital Clean Energy Carriers has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, SFL has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Dividends

Capital Clean Energy Carriers pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. SFL pays an annual dividend of $1.08 per share and has a dividend yield of 10.4%. Capital Clean Energy Carriers pays out 46.2% of its earnings in the form of a dividend. SFL pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Capital Clean Energy Carriers and SFL”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Clean Energy Carriers	$360.59 million	2.80	$47.21 million	$1.30	14.02
SFL	$873.22 million	1.65	$83.94 million	$1.11	9.38

SFL has higher revenue and earnings than Capital Clean Energy Carriers. SFL is trading at a lower price-to-earnings ratio than Capital Clean Energy Carriers, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.6% of SFL shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Capital Clean Energy Carriers and SFL, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Clean Energy Carriers	0	0	2	1	3.33
SFL	0	0	2	1	3.33

Capital Clean Energy Carriers presently has a consensus price target of $24.00, suggesting a potential upside of 31.65%. SFL has a consensus price target of $16.00, suggesting a potential upside of 53.62%. Given SFL’s higher possible upside, analysts clearly believe SFL is more favorable than Capital Clean Energy Carriers.

Profitability

This table compares Capital Clean Energy Carriers and SFL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Clean Energy Carriers	25.79%	9.72%	3.24%
SFL	16.03%	14.61%	4.03%

Summary

SFL beats Capital Clean Energy Carriers on 7 of the 13 factors compared between the two stocks.

About Capital Clean Energy Carriers

Capital Clean Energy Carriers Corp., a shipping company, provides marine transportation services in Greece. The company’s vessels provide a range of cargoes, including liquefied natural gas, containerized goods, and cargo under short-term voyage charters, and medium to long-term time charters. It owns vessels, including Neo-Panamax container vessels, Panamax container vessels, cape-size bulk carrier, and LNG carriers. In addition, the company produces and distributes oil and natural gas, including biofuels, motor oil, lubricants, petrol, crudes, liquefied natural gas, marine fuels, natural gas liquids, and petrochemicals. It serves as the general partner of the company. The company was formerly known as Capital Product Partners L.P. and changed its name to Capital Clean Energy Carriers Corp. in August 2024. Capital Clean Energy Carriers Corp. was incorporated in 2007 and is headquartered in Piraeus, Greece. Capital Clean Energy Carriers Corp. operates as a subsidiary of Capital Maritime & Trading Corp.

About SFL

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.